Italy’s Eni said it is planning $7.9 billion in asset sales by 2019 and steeper cost reductions as it continues trying to mitigate the impact of low oil prices.
In a Friday strategy update, the Italian major said it is targeting output growth of 13% to 2019. During the same period, Eni plans to cut upstream Capex by an additional 18% versus the 2015 plan.
The company said that savings from actions such as contract renegotiations and synergies with existing assets have lowered the break-even costs for new projects: from $45 to $27 boe.
Eni’s 4Q15 results last month showed that its oil and gas output increased to the highest in five years, even as (like virtually all of its peers) it recorded a quarterly loss.
CEO Claudio Descalzi said in a statement, “Our industry is facing a very complex challenge: reducing costs to fulfill short-term constraints while enhancing long-term value…We are well positioned to meet this challenge through a competitive cost structure, an efficient operating model and a flexible asset portfolio.”